non compete agreement

[fred.taylor]

What is the name of your state? Indiana

In 2009 I had signed a non compete agreement with my old employer. Upon leaving my company they sent me a letter saying that I'm obligated to the terms of this agreement, highlighting this reason; compete with employer by participating in any manner in the business employee conducted for employer for any entity by providing product or services that are similar and competitive with the products or services provided by the employer and to the extent the entity or the company operates:

1 50 mile radius where work was performed on behalf of employer

2. Illinois, Indiana, and 18 other states

3 as an affiliate, subsidiary of; this list has about 25 companies, which is everyone in my geographical area

The period of the agreement they are trying to enforce is for two years.

What I'm trying to find out is if is an enforceable agreement? Isn't there a law that prevents my old company from preventing me from working in an area of my expertise to provide for my family especially since the geographical area they are trying to protect is so large? I would like to take employment with another company but don't want to get a letter or worse saying I'm violating this contract.

 

[LdiJ]

What is the name of your state? Indiana

In 2009 I had signed a non compete agreement with my old employer. Upon leaving my company they sent me a letter saying that I'm obligated to the terms of this agreement, highlighting this reason; compete with employer by participating in any manner in the business employee conducted for employer for any entity by providing product or services that are similar and competitive with the products or services provided by the employer and to the extent the entity or the company operates:

1 50 mile radius where work was performed on behalf of employer

2. Illinois, Indiana, and 18 other states

3 as an affiliate, subsidiary of; this list has about 25 companies, which is everyone in my geographical area

The period of the agreement they are trying to enforce is for two years.

What I'm trying to find out is if is an enforceable agreement? Isn't there a law that prevents my old company from preventing me from working in an area of my expertise to provide for my family especially since the geographical area they are trying to protect is so large? I would like to take employment with another company but don't want to get a letter or worse saying I'm violating this contract.

That is an almost ridiculously broad agreement. Were you in upper management or upper sales management?

 

[fred.taylor]

That is an almost ridiculously broad agreement. Were you in upper management or upper sales management?

Not when I signed the agreement. I was promoted about 3 years ago to a sales manager and they tried to get me to sign another agreement which I declined.

 

[quincy]

The agreement would need to be read in its entirety but I agree with LdiJ that it seems to be overly broad both in time and geographic region.

I suggest you take the contract to an attorney in your area for a personal analysis of its terms and the facts of your previous employment.

Good luck.

 

[PayrollHRGuy]

18 states is likely way to wide an area and a quick look at Indiana specific info looks like 2 years is too long.

 

[quincy]

18 states is likely way to wide an area and a quick look at Indiana specific info looks like 2 years is too long.

Although that is certainly how I see it based strictly on what we know, it can depend on factors not known (example: if trade secrets are involved).

 

[fred.taylor]

In the agreement they are claiming to protect trade secrets but the knowledge such as pricing and margins can reasonably be theorized by any one in the industry. As far as I know there is nothing except for customer list that they may be trying to protect but I didn't have any part of anything that took place in those accounts, I only interacted with one group 12 stores.

 

[quincy]

You should consult with an attorney in your area and have facts personally reviewed. I can't tell you whether the noncompete is enforceable as written.

The protecting of trade secrets is a legitimate business concern and the disclosure of trade secrets can come with hefty penalties depending on their demonstrated value to a business.

But there are problems with noncompete agreements that prevent an employee from finding new employment, which is why noncompete restrictions have limits on time and geographic area - and why some states like California (generally) won't enforce them.

Nondisclosure clauses in noncompete agreements, on the other hand, can be enforceable.